Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
Bitcoin (CRYPTO: BTC) experienced a price correction on Friday, dipping below $64,000 and prompting over $27 million in long position liquidations within the past 24 hours.
This follows a broader trend of liquidations across the cryptocurrency market, with a total of $132 million liquidated in the same period.
Data from Coinglass reveals that long positions accounted for the majority of these liquidations, at roughly $105 million.
Is This A Consolidation Phase?
Despite the recent price drop, some analysts remain optimistic about Bitcoin’s long-term prospects.
Trader Jason Pizzino believes the current market activity is part of a consolidation phase before a potential surge later in the year.
“Looking at Google trends, Bitcoin and crypto search terms are still down significantly compared to earlier this year,” Pizzino observed. “This suggests to me that we’re still in a windup period, similar to what happened in 2020.”
Pizzino highlights the decline in search volume for terms like “Bitcoin,” “buy Bitcoin,” and “sell Bitcoin” as a sign of waning short-term interest.
He compares this to 2020, where a similar trend preceded a period of consolidation followed by a price increase.
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Potential For Renewed Activity In Q3 2024
Pizzino predicts that increased activity may return in the third quarter of 2024, potentially coinciding with a period historically marked by price volatility.
“Based on past cycles, the period between July and September, roughly four to six months after the previous all-time high, could see renewed action,” Pizzino explained. “We’ll have to wait and see, but for now, the consolidation phase appears to be ongoing.”
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